NEW DELHI: Telecom companies may have to wait a little longer to get any significant relief from the government, as the telecom department is still awaiting clarifications sought from an inter-ministerial group (IMG) on some of its recommendations to help the financially stressed sector. In the interim, though, the government may take some steps on a piecemeal basis.

“The IMG has given clarifications on some, but not all the aspects,” said a senior government official in the telecom ministry, asking not to be named. “Since some of the things haven’t been clarified, it (approving IMG’s recommendations on relief) may take a bit longer.”

The inter-ministerial group was set up to recommend ways to improve the health of an industry grappling with Rs 5 lakh crore of debt, with some carriers having defaulted on payments to be made to the government for spectrum bought through auctions. The Telecom Commission, the top decision-making body within the Department of Telecommunications had sought clarifications on some of the recommendations that the group had made.

The key among the issues that may take time to decide on is the value to be considered in the adjusted gross revenue (AGR) for spectrum trading.

The IMG suggested that only the profit or gain arising from trading, rather than the full deal amount, be taken as part of AGR. The Telecom Commission, which is set to meet on Friday, is expected to take a legal opinion on this.

The commission had told the IMG, which comprises members from the telecom, finance and economic affairs departments, to come back with solutions that could give “greater, immediate” relief to the sector.

Extending the period to pay for spectrum bought through auctions to 16 years from the current 10, and changing the basis of interest calculation to reduce the financing cost for companies were among the key recommendations given by the IMG. The Telecom Commission has asked whether the period could be 12 or 14 years, instead of 16.

The IMG had rejected the industry’s major demands for lowering licence fees and spectrum usage charge. Extension to the payment tenure and shifting the basis for interest payment on licence fees and spectrum usage charge to the marginal cost of fund-based lending rate from prime lending rate were termed as inadequate by several companies. They had lobbied hard for greater relief, citing falling tariffs, declining profits, rising debt and substantial investment commitments.

Meanwhile, telecom secretary Aruna Sundararajan said some companies that wanted to invest in the telecom and ‘Make in India’ segments had asked for “tweaks to the regulatory system”.

“In the case of 5G, they want certain bands to be de-licensed, blocks to be of a certain size … in Make in India, some have said they want basic customs duty reduced on some items and increased on some that they will be manufacturing,” she said on the sidelines of the India Mobile Congress.